Entering the holiday let market? New report says try South Devon

Search demand for holiday homes in South Devon rose by as much as 100% in 2021, suggesting a record year for the self-catering industry in the area, according to holiday home company Classic Cottages.

Its free downloadable guide – titled ‘A guide to holiday letting in South Devon – revealed that average incomes for holiday homes in South Devon increased by 19% compared to 2019.

Racing ahead in terms of demand, Bigbury-on-Sea saw a 100% increase in site search traffic, followed by Salcombe, where property searches rose 67%, and Dartmouth, which witnessed a 48% rise in interest.

The guide also covers advice and top tips on all aspects of holiday home ownership in Devon, ranging from tax considerations through to insurance, as well as what types of properties to consider, and why. 

Average property prices are shown by location so that nomadic buyers can see where they can make their money stretch furthest. The report shows that an investor with a £1.3 million budget, for example, could purchase a five-bedroom sea-view house in Salcombe, or three three-bedroom houses in Brixham, leaving money to spare for renovation work.

In addition, the guide provides helpful tips on features that owners should consider when purchasing a property to boost their annual income. Sea views, for example, have been shown to increase average income by up to 39%, while adding a hot tub can generate a 29% uplift in turnover. Making a property pet-friendly can boost revenue by as much as 29%. 

Covering developments, apartments, cottages, holiday homes, glamping, cabins, huts and even tree houses, the report provides a one-stop guide for individuals who are considering investing in a holiday home, or using land to generate an income from glamping.

The handy report shows average property prices for some of South Devon’s most popular holiday destinations, as well as average incomes that holiday homeowners can expect for one, two, three and four-bedroom properties. 

Commenting on the guide, Dan Harrison, commercial director of Classic Cottages, says: “2021 was an extraordinary year for the business and as we enter the second quarter of 2022, we continue to see portfolio growth and strong booking numbers. Occupancy levels for the year ahead are already up 20% versus the same point in 2019, which is a very positive start to the year.”

“Our report summarises just a few of the key observations we’ve made on property investments in Devon as well as booking patterns for the year. It proves that the popularity of holidays in Devon is not wavering and it would be a good time to invest for those considering a holiday home in the southwest.”

The guide, which is available to download, includes area guides so that investors less familiar with South Devon can understand the potential draws of one destination over another.